Workers join broad people’s formation vs. VAT

The militant labor center Kilusang Mayo Uno (KMU) said in a press conference today that they will monitor the Senate’s deliberation on the proposed 2 percent Value Added Tax hike. The group joined Kontra-KulimVAT, a broad formation of cause-oriented groups, consumers organizations and individuals opposing the tax increase.

“Aside from the damaging economic effects of VAT on workers and poor people, we are alarmed that additional taxes will only result to stepped-up corruption in the bureaucracy. Bureaucratic leeches will have fresh funds to plunder once the VAT hike is approved.”

“We will hold a protest action at Senate tomorrow to put political pressure on the Senate debate on VAT. We strongly urge pro-VAT Senators to rethink their position and consider the people’s broad resistance against the tax hike measure. We will put up a scoreboard outside the Senate building so the public will know who among the Senate members are in favor of the VAT hike and who are sharing the people’s sentiments against onerous tax measures promoted by the Gloria Macapagal-Arroyo administration,” said KMU Chairperson Elmer Labog.

He said pro-VAT Senators will be put in the Hall of Shame together with lower house representatives who favored the tax increase that will likely effect another spate of price hikes of basic goods and services. “Another burdensome tax measure is the last thing that workers need now. We are campaigning for additional wages not further inconvenience.”

Labog commended Senators Joker Arroyo, Manny Villar, Ramon Revilla Jr. and opposition legislators in the Lower House for expressing their initial caution on the VAT hike’s effect on the poor. “We hope more Senators will oppose the VAT,” the labor leader stressed.

The labor group further lambasted Malacanang, House Speaker Joe De Venecia and Senate President Franklin Drilon for insisting that the tax hike will not severely affect the poor because of VAT exempted products and services. “Business group Employers Conferederation of the Philippines (ECOP) declared they will not shoulder the additional taxes and will pass it on to consumers.”

The KMU leader called the attention of legislators to prioritize the workers’ P125 across-the-board wage hike demands as a concrete response to rising prices of commodities, public utilities and wage erosion.